US stocks, during what was a volatile session, fell sharply on Monday, losses deepened in the last hour of trading.
President Trump, upon arriving in Arizona, criticized House Speaker Nancy Pelosi for not wanting to draft a stimulus bill, despite his outside efforts to reach a deal by Tuesday. She is expected to meet with Treasury Secretary Mnuchin today.
The Dow Jones Industrial Average fell more than 400 points or 1.5%, while the NASDAQ Composite and the technology-intensive S&P 500 also fell 1.6% each.
|I: DJI||MEDIUM DOW JONES||28,195.42||-410.89||-1.44%|
|I: COMP||NASDAQ COMPOSITE INDEX||11478.882835||-192.67||-1.65%|
Consumer discretionary stocks, which would benefit from a stimulus bill that includes Walmart and Amazon, fell.
STOCK STATEMENT FOR THE THIRD SESSION IN ECONOMICS, COVID-19 CONCERNS THE RESURFACE
As part of the negotiation, Conoco Phillips is buying Concho Resources for $ 9.7 billion as consolidation continues in the US energy sector. The deal makes the new company “the largest independent oil and gas company with pro forma production of more than 1.5 million barrels of oil equivalent per day” according to the companies.
|CXO||CONCHO RESOURCES INC.||47.26||-1.34||-2.76%|
THE ECONOMY AT A GLANCE
In the global economy, China said its economy grew at a rate of 4.9% between July and September, according to official data released by the Chinese government. Analysts polled by Refinitiv had expected an expansion rate of 5.2%.
During a panel hosted by the International Monetary Fund, Federal Reserve Chairman Jerome Powell said the Fed was evaluating the benefits of a digital currency.
Federal Reserve Vice Chairman Richard Clarida said additional fiscal and monetary support would be needed to help the struggling US economy, noting that it would take another year before the economy returned to its levels before the pandemic.
European Central Bank President Christine Lagarde has urged the European Union to view the $ 878 billion stimulus fund as a permanent tool.
HOT HOUSING MARKET
The US real estate market, which continues to be supported by historically low interest rates, remains hot.
The NAHB Housing Market Index for October hit a new high with a reading of 85, above analysts’ estimates of 83.
FEEDBACK ON THE RESULTS
Profits are again concentrated, with oil services firm Halliburton Company reporting another quarterly loss, but CEO Jeff Miller has signaled the industry is stabilizing.
|IBM||INTERNATIONAL BUSINESS MACHINES CORP.||125.52||-0.41||-0.33%|
After the close, traders will look at the results of IBM, which recently announced plans to split its infrastructure services unit into a new publicly traded company.
Microsoft Corp., which competes with IBM in cloud computing, is at the center of concerns after Jefferies raised its price target on the tech giant to $ 260 a share, the highest on Wall Street.
Tesla Inc. announced Monday that it will begin exporting Model 3 cars made in China to a number of European countries.
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West Texas Intermediate crude oil closed slightly lower at $ 40.83 per barrel, while gold climbed to $ 1,906.40 per ounce.
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